What is Trucking Logistics? (The Whole Concept in One Guide)

Every time you order a package online or pick up groceries from the store, you see trucking logistics in action. 

The global supply chain relies heavily on the trucking industry to transport freight across provinces, countries, and continents. 

In the United States alone, the trucking industry is responsible for moving approximately 72.6% of all freight by weight, underscoring its significance in the nation’s economy.

But getting products from point A to point B is no easy feat. It requires careful coordination, route planning, and inventory management for timely deliveries and to make logistics operations cost-effective. 

That’s where trucking logistics comes in.

At its core, trucking logistics is the strategic planning and execution of truck storage, transport, and flow of goods. From optimizing truck routes to managing freight inventory, trucking logistics aims to maximize efficiency and minimize logistics costs for businesses.

So, in this blog, we’ll provide an in-depth look at key aspects of trucking logistics, including a detailed understanding of trucking logistics companies and how to choose one for your business.

What is Trucking Logistics?

Trucking logistics refers to the planning, organization, and implementation of transportation operations for the trucking industry. It involves managing and coordinating the shipment of goods via trucks and oversight of the entire supply chain process.

Key aspects of trucking logistics include:

• Route planning: Mapping out delivery routes by optimizing for factors like time, distance, fuel costs, and tolls. Advanced routing software, like Upper, can help automate optimal route creation.
• Fleet management: Managing a fleet of trucks, drivers, and cargo to coordinate the transportation of goods. This includes tracking location, load assignment, and driver schedules.
• Warehouse management: Coordinating inventory flow in and out of warehouses to ensure goods are received, stored, and shipped efficiently via dedicated truck routes.
• Order fulfillment: Managing order information and ensuring customer delivery requirements are met through proper truckload planning, routing, and scheduling.
• Carrier sourcing: Identifying, vetting, and contracting with trucking carriers to provide transportation services for shipments.
• Freight brokerage: Acting as an intermediary to arrange transportation of freight between shippers and carriers.
• Shipment tracking: Monitoring the real-time status and location of truck shipments using GPS, ELDs, and other technology.
• Delivery optimization: Utilizing techniques like load consolidation to maximize delivery efficiency and reduce costs.
• Performance monitoring: Collecting transportation data to identify areas for improvement in delivery times, costs, and efficiency.

The primary goal of trucking logistics is to ensure timely, efficient, and cost-effective delivery of products through prudent coordination of assets, resources, partners, and transportation activities. Advanced logistics planning is crucial for trucking companies to operate sustainably and profitably.

Types of Truck Loads and Shipping Methods in Trucking Logistics

When it comes to transporting products by truck, companies have several options depending on their specific shipping needs:

1. Full Truck Load (FTL)

FTL shipping is ideal when you have a large quantity of goods to transport that can fill an entire 53-foot trailer truck. This method ensures that your single shipment receives dedicated attention and can result in faster transit times compared to other options.

FTL allows direct transport without loading/unloading at warehouses along the way; hence, the labor cost is lower.

2. Less than Truckload (LTL)

Less than truckload (LTL) freight shipping combines smaller shipments from multiple customers into a single truck. Each customer pays for the space their goods occupy rather than the entire truck, making it a cost-effective option for smaller shipments.

3. Partial Truckload (PT)

Partial Truckload shipping strikes a balance between TL and LTL. It’s perfect for shipments larger than LTL but not enough to fill an entire truck, generally occupying 10-26 pallet spaces on a truck. 

PT offers the benefits of faster transit times and reduced handling associated with TL, without the need for a full truck. The shipping costs are usually based on weight and distance.

4. Expedited shipping

Need your goods delivered urgently? Expedited shipping is the solution. 

While it may incur higher costs, expedited shipping ensures your goods reach their destination quickly, making it ideal for time-sensitive shipments.

5. Refrigerated trucking

When transporting temperature-sensitive goods like perishable foods or pharmaceuticals, refrigerated trucking is essential. 

Reefer trucks are equipped with temperature control to maintain the desired temperature throughout transit, ensuring the freshness and integrity of the goods.

6. Flatbed shipping

Flatbed shipping is used for oversized load or irregularly shaped cargo that cannot fit into standard enclosed trucks and requires open air. 

Commonly used for transporting construction materials, machinery, or large equipment, flatbed shipping offers versatility and ease of loading and unloading.

7. Air ride truckload

Air ride truckload provides a smoother transportation experience for fragile or sensitive cargo, reducing the risk of damage during transit compared to standard truckloads.

Equipped with air suspension systems, air ride trucks absorb shocks and vibrations, ensuring the safe and secure transport of delicate goods.

What are Truck Logistics Companies?

Trucking logistics companies are businesses that specialize in managing the movement of goods via trucks. They handle tasks like planning routes, coordinating shipments, and ensuring product deliveries in a timely manner.

These transportation companies typically work with manufacturers, retailers, and distributors to transport goods efficiently and cost-effectively. Some trucking logistics companies also offer additional services such as warehousing, inventory management, and supply chain optimization.

5 Main Types of Truck Logistics Companies

There are various types of logistics companies, each offering different services to meet the needs of their clients.

Here are the five main types of trucking logistics companies:

1. Freight brokers: Freight brokers tend to work as intermediaries between shippers (those who need goods transported) and carriers (trucking companies). They help match shippers with carriers for a fee but do not own any trucks or warehouses themselves.
2. Third-party logistics providers (3PLs): 3PLs offer a range of logistics services, including transportation, warehousing, inventory management, and supply chain optimization. They often have their own warehouses, staff, and fleet of trucks. They even use 3PL software to automate their processes and partner with other carriers to fulfill their clients’ needs.
3. Fourth-party logistics providers (4PLs): 4PLs take logistics management one step further by overseeing the entire supply chain on behalf of their clients. They coordinate multiple 3PLs and other service providers to ensure seamless logistics operations.
4. Carriers: Carriers are trucking companies that own and operate trucks for transporting goods. They may work directly with shippers or subcontract their services through a freight broker or 3PL.
5. Dedicated contract carriers: Dedicated contract carriers provide transportation services exclusively to one client under a long-term contract. They operate trucks dedicated solely to that client’s shipments, offering customized solutions tailored to their specific needs.

Each type serves a different role for companies looking to outsource or supplement their logistics operations. You should look for providers with extensive transportation experience, vast carrier networks, competitive rates, and excellent customer service.

How do Logistics Companies Help in Supply Chain Management?

Supply chain management comprises the strategies and processes involved in developing a product and fulfilling consumer demand. It includes sourcing materials, manufacturing, inventory management, order processing, and transportation.

When we talk about logistics companies, they become involved in the supply chain management process through their transportation and warehousing services.

Here’s an overview of how logistics companies contribute to supply chain management:

• Transportation management: Coordinating the movement of products between suppliers, manufacturing plants, warehouses, and end customers. This includes carrier selection, route optimization, and freight tracking.

• Warehouse management: Providing storage space for inventory, materials, and finished products. They handle receiving, picking, packing, and shipping from warehouses.
• Inventory management: Overseeing inventory levels and optimizing stock levels to meet demand while minimizing holding costs and avoiding stockouts.
• Order fulfillment: Receiving customer orders, picking or packing requested items from warehouse inventory, and preparing shipments.
• Reverse logistics: Reverse logistics includes managing the return process when customers send items back, including transportation, inspection, and processing.
• Reporting & metrics: Supplying data and KPIs on the logistics process, inventory levels, shipping times, costs, and other relevant metrics to evaluate and refine the processes.

While logistics companies don’t oversee the entire supply chain, their warehousing, transportation, and inventory management services help optimize key fulfillment processes for businesses. Their contributions facilitate the smooth, timely flow of products to meet customer demand.

7 Key Considerations in Choosing a Trucking Logistics Partner

Choosing the right trucking logistics partner is crucial when you aim to streamline their supply chain operations and ensure efficient transportation of goods.

Here are 7 key considerations to keep in mind when selecting a trucking logistics partner:

1. Experience and expertise: Look for a partner with extensive experience in the industry and a proven track record of success. A logistics company with deep expertise understands the complexities of logistics and can navigate challenges effectively.
2. Reputation and reliability: Research the reputation of potential partners by reading reviews, seeking referrals, and examining their performance history. So, choose a partner known for their on-time deliveries and dependable service.
3. Service offerings: Evaluate the range of services offered by each logistics partner. Ensure they can meet your specific needs, whether it’s full truckload shipping, warehousing, inventory management, or specialized services like temperature-controlled transportation.
4. Technology and innovation: Partner with a logistics company that leverages advanced technology and innovative solutions to optimize logistics processes. Look for features like real-time GPS tracking, RFID, route optimization, and electronic documentation, which enhance visibility and efficiency.
5. Customer service: Responsiveness to inquiries and issues indicates reliable customer service. 24/7 availability is ideal. So, choose a partner that prioritizes customer support and provides timely updates and assistance throughout the shipping process.
6. Cost and value: While cost is an important factor, prioritize value over price alone. Consider the overall value proposition offered by each partner, including service quality, reliability, and the ability to meet your long-term business goals.
7. Scalability and flexibility: Select a logistics partner capable of scaling their services to accommodate your evolving needs. Whether your business experiences seasonal fluctuations or rapid growth, ensure your partner can adapt and support your changing requirements.

Try Leveraging Technology for Improved Logistics Operations

Trucking logistics play a critical role in ensuring the smooth flow of goods within the global supply chain. From route planning to inventory management, logistics companies streamline operations to maximize efficiency and minimize costs for businesses.

Understanding the types of truck loads, the role of a logistics company, and key considerations in choosing a partner are essential for optimizing logistics operations.

As you navigate the complexities of trucking logistics, consider working with the right partner and leveraging route planning software like Upper. Upper uses algorithms to create efficient delivery routes, considering factors like traffic, time windows, priority deliveries, and other time and distance-based constraints. This allows you to shorten routes, decrease fuel expenses, and improve driver safety.

In addition to this, Upper also provides:

• Real-time GPS tracking for end-to-end visibility
• Vehicle load planning
• Automated customer notifications
• One-click route dispatch
• Proof of delivery
• Integration capabilities to handle all the logistics operations with ease.

Want to experience the benefits firsthand?

Sign up for a free 7 days trial and experience how Upper can help optimize trucking logistics operations.